Dave Foley hosts his first Christmas special, a beach party extravaganza guest starring "surf guitar god" Dick Dale and 'Santa Dude' (Jason Priestly), who has brought gifts to sell via phone order. Dave isn't feeling the spirit though. After consulting with a priest (Andy Richter) & Mike Myers and his butler (Tom Green), he decides that what the special needs is Canada, so he quickly moves the entire production to a ski lodge up north.
Dave starts the special up again but something still doesn't feel right. He meets Elvis Stojko but he has no advice for him. Back at the lodge, El Vez is arguing with the lodge manager, as Dave's special has displaced him and his dancers, the El Vettes, who were scheduled to perform there. Dave agrees to share the rooms with El Vez and the El Vettes but then Elvis Stojko walks in and the El Vettes swoon over him. This infuriates Dave, who gives up on his special and calls Christmas specials "stupid" and "humbug".
Dave goes to sleep but is awoken by the Ghost of Christmas Specials Past (Dave Thomas as Bob Hope), who is there to restore Dave's faith in Christmas specials. He shows Dave a vision of Bing Crosby (Joe Flaherty) and David Bowie (Dave Foley) singing a version of "The Little Drummer Boy" like in the 1977 Bing Crosby Christmas Special. Then comes The Ghost of Christmas Specials Present (Jann Arden), who shows Dave how much fun everybody (except El Vez, who is upset at Elvis Stojko for stealing the El Vettes' attention) is having. Finally, Dave is visited by The Ghost of Christmas Specials Yet To Come (Kevin McDonald), who shows Dave the future of Christmas specials (a virtual experience devoid of actual interaction or emotion) if he does not change his ways.
Dave awakens and seeks out Elvis, apologizing for how he acted earlier. He gathers everybody together and talks about Christmas being about 'kindness, compassion and empathy'. The El Vettes reconcile with El Vez & Dave, and the special ends with El Vez & the El Vettes performing a rock version of "Feliz Navidad".